BAE Systems Could Be Hit by U.S. Plan to Increase Taxes on Some Foreign-Domiciled Companies -- Market Talk

Dow Jones

Jun 03, 2025

0828 GMT - U.K. defense groups such as BAE Systems, Melrose Industries and QinetiQ could take a hit if U.S. lawmakers enact President Trump's One Big Beautiful Bill Act, Citi analyst Charles Armitage says. The act, which has cleared the House of Representatives and is due to be voted at the Senate, includes a provision that could facilitate penalty taxes on foreign companies operating in the U.S. if their home country is deemed to have a "discriminatory" tax system. Armitage says much of the European Union and the U.K. will likely qualify. BAE Systems, with between 45% and 50% sales in the U.S. could suffer a 3% downside to earnings per share in the first year, rising to about 12% in the fourth year, assuming no mitigation occurs, he adds. BAE Systems trades up 1.5% at 19.47 pounds. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

June 03, 2025 04:32 ET (08:32 GMT)

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The act, which has cleared the House of Representatives and is due to be voted at the Senate, includes a provision that could facilitate penalty taxes on foreign companies operating in the U.S. if their home country is deemed to have a \"discriminatory\" tax system. Armitage says much of the European Union and the U.K. will likely qualify. BAE Systems, with between 45% and 50% sales in the U.S. could suffer a 3% downside to earnings per share in the first year, rising to about 12% in the fourth year, assuming no mitigation occurs, he adds. BAE Systems trades up 1.5% at 19.47 pounds. (cristina.gallardo@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 03, 2025 04:32 ET (08:32 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BAE Systems Could Be Hit by U.S. Plan to Increase Taxes on Some Foreign-Domiciled Companies -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBAE Systems Could Be Hit by U.S. Plan to Increase Taxes on Some Foreign-Domiciled Companies -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-06-03 16:32</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0828 GMT - U.K. defense groups such as BAE Systems, Melrose Industries and QinetiQ could take a hit if U.S. lawmakers enact President Trump's One Big Beautiful Bill Act, Citi analyst Charles Armitage says. The act, which has cleared the House of Representatives and is due to be voted at the Senate, includes a provision that could facilitate penalty taxes on foreign companies operating in the U.S. if their home country is deemed to have a \"discriminatory\" tax system. Armitage says much of the European Union and the U.K. will likely qualify. BAE Systems, with between 45% and 50% sales in the U.S. could suffer a 3% downside to earnings per share in the first year, rising to about 12% in the fourth year, assuming no mitigation occurs, he adds. BAE Systems trades up 1.5% at 19.47 pounds. (cristina.gallardo@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 03, 2025 04:32 ET (08:32 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4187","symbol_name":"航天航空与国防","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2540972636","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2540972636","pubTimestamp":1748939520,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0828 GMT - U.K. defense groups such as BAE Systems, Melrose Industries and QinetiQ could take a hit if U.S. lawmakers enact President Trump's One Big Beautiful Bill Act, Citi analyst Charles Armitage says. The act, which has cleared the House of Representatives and is due to be voted at the Senate, includes a provision that could facilitate penalty taxes on foreign companies operating in the U.S. if their home country is deemed to have a \"discriminatory\" tax system. Armitage says much of the European Union and the U.K. will likely qualify. BAE Systems, with between 45% and 50% sales in the U.S. could suffer a 3% downside to earnings per share in the first year, rising to about 12% in the fourth year, assuming no mitigation occurs, he adds. BAE Systems trades up 1.5% at 19.47 pounds. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4187":"航天航空与国防","BAESY":"BAE Systems PLC"},"translate_title":"BAE系统公司可能会受到美国的打击。拟对部分外资企业加税--市场谈","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BAESY":0.9},"content_text":"0828 GMT - U.K. defense groups such as BAE Systems, Melrose Industries and QinetiQ could take a hit if U.S. lawmakers enact President Trump's One Big Beautiful Bill Act, Citi analyst Charles Armitage says. The act, which has cleared the House of Representatives and is due to be voted at the Senate, includes a provision that could facilitate penalty taxes on foreign companies operating in the U.S. if their home country is deemed to have a \"discriminatory\" tax system. Armitage says much of the European Union and the U.K. will likely qualify. BAE Systems, with between 45% and 50% sales in the U.S. could suffer a 3% downside to earnings per share in the first year, rising to about 12% in the fourth year, assuming no mitigation occurs, he adds. BAE Systems trades up 1.5% at 19.47 pounds. (cristina.gallardo@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  June 03, 2025 04:32 ET (08:32 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}